“role of employment opportunities & challenges in …
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Journal of Analysis and Computation (JAC) (An International Peer Reviewed Journal), www.ijaconline.com, ISSN 0973-2861
International Conference on Transformation of Business, Management, Economy in
Digital Era.
Mr. K. Selvam 1
“ROLE OF EMPLOYMENT OPPORTUNITIES & CHALLENGES
IN TOURISM AND HOSPITALITY SECTORS”
Presented by
Mr. K. Selvam,
Ph.D. Research Scholar & Assistant Professor
Leela Institute of Hotel Management, Madurai – 625016,
ABSTRACT:
Tourism is one of the main economic engines for nations with total contribution of 9.5% to global GDP
and 8.9% of employment. Tourism can only flourish if the industry can employ qualified staff or
sustainable workforce which is the heart for excellent and prompt service delivery system. Thus, this
review made to give summarized information about challenges and opportunities of tourism and
hospitality employment. Narrative review was used where selected and related articles, reports and
studies of the topic are compared and summarized. Tourism and hospitality creates diversified
employment opportunities in different sectors like accommodation, food and beverage establishments,
transportation services, travel agencies, tour operation companies, natural and cultural attractions sites.
The challenges are poor pay and working conditions, sexual harassment, discrimination, unequal
treatment, low education and training, undemocratic and rigid corporate culture, seasonality and
political instability which drastically reduce the number of visitors which in turn brings high employees’
turn over. Concerned stakeholders including, academicians, policy makers and business owners of
tourism and hospitality shall take actions to bring sustainable work force for the development tourism
and hospitality sectors.
Keywords: Employment, Opportunities, Challenges, Tourism & Hospitality, etc.
INTRODUCTION
Tourism is one of the world’s largest and rapidly growing industries. In the 21st century, global
economy is driven by three major industries includes technology, telecommunication and
tourism. Tourism is the collection of activities, services and industries that deliver a travel
experience including attractions, transportations, accommodations, eating and drinking
“ROLE OF EMPLOYMENT OPPORTUNITIES & CHALLENGES IN TOURISM AND HOSPITALITY
SECTORS”
Mr. K. Selvam 2
establishments of retail shops, entertainment, business and other hospitality services provided for
individuals or groups of travelling away from home.In 2013, Travel and Tourism’s total
contribution to the global economy rose to 9.5% of global GDP. In total, nearly 266 million jobs
(8.9% of total employment) were supported by Travel and Tourism in 2013 (1 in 11 of all jobs in
the world). According to ILO Global Dialogue Forum on New Developments and Challenge
report, even though international tourism is affected by the global economic and social crisis, it
is anticipated that the tourism sections global economy to provide 296 million jobs by 2019 so
that tourism has the potential to become a major generator of job. Tourism is extremely labour
intensive and a significant source of employment. It is among the world‘s top creators of jobs
requiring varying degrees of skills and allows for quick entry into the workforce for youth,
women and migrant workers. In some countries, the contribution of tourism for employment is
indispensable; for instance, India is the second largest employment generator in the field of
tourism as large as 25 million jobs Chandrakanta Sahoo’s cited in Dayananda, In Ethiopia, the
total contribution of Travel and Tourism to GDP was ETB 91, 898.4 million (9.3% of GDP) and
there were 2,291,500 jobs in 2014 (8.5% of total employment). Tourism and hospitality
industries create many employment opportunities in different areas like accommodations,
transportation, attractions sites. Therefore, the availability of skilled and trained manpower is a
crucial element in the success of any tourism development plan or programme, hence employees
is a sine qua non of tourism industry. However, the constraints of employment in tourism
industry are unstable employment, low job status, long antisocial working hours and low pay.
The immediate and most obvious consequences of such a situation is the difficulty of recruiting
suitable staff and high staff turnover, these are costly to the success of the industry. Indeed, less
due attentions have been giving to employees working in tourism and hospitality sectors.
However, staffs are the heart for excellent and prompt service delivery system. Thus, such staffs
are arguably the most indispensable assets of the organization. The relationship between human
resources and tourism can be expressed in two main aspects. First, tourism can only flourish if
the industry can employ an adequate supply of good quality staff or sustainable workforce. The
other issue is that the way in which staffs are treated by both managers and customers and vice
versa should be in line with social equality and justice. Equally important, the quality of tourists’
experiences and images in a destination is highly dependingon employees’ professionalism.
Journal of Analysis and Computation (JAC) (An International Peer Reviewed Journal), www.ijaconline.com, ISSN 0973-2861
International Conference on Transformation of Business, Management, Economy in
Digital Era.
Mr. K. Selvam 3
Therefore, this review paper is aimed to give summarized information on the issues of
employment opportunities and challenges of tourism and hospitality and indicated the
implication of the findings to concerned stake holders including, academicians, policy makers
and business owners of tourism and hospitality so as to take actions to bring sustainable work
force in the industry.
METHODS:In this review, the findings of different studies related to employment opportunities
and challenges of tourism and hospitality sectors were seriously reviewed that address the
question: what are the challenges of employment in tourism and hospitality? And what are the
employment opportunities of tourism and hospitality sectors? Academic articles, grey literature,
and media sources were gathered in a comprehensive fashion in order to answer this question.
Philip Mayer guideline for a review article was adopted mainly narrative review of
methodological approach. Status quo review will be employed, which adopted from cited in
Mayer, to present most current researches, reports and articles conducting during the last 10years
having issues related with challenges and opportunities of employment diversification of tourism
and hospitality sectors. Since, the review paper presents a summarized comprehensive topic,
readers who haven’t read original articles, reports and studies, they will get brief key points of
issues. Moreover, questions relating to employments in tourism and hospitality sectors and
challenges and opportunities were identified. Then relevant academic articles and journals were
identified. In the review, more than 50 articles and journals were identified and 16 of them were
critically reviewed to address the formulated questions then reviewed.
Finally, by charting the data and assembling, summarizing and reporting the results on
the basis of the author’s experience, existing theories and models. It also incorporates some
statistical data, reports and proceedings published by World Tourism Organization, World Travel
and Tourism Council and Culture and Tourism Minister.
EMPLOYMENT OPPORTUNITIES OF TOURISM AND HOSPITALITY SECTORS:
Based on the involvement or contribution tourism supply side, employment opportunities in
tourism and hospitality sectors can be created either directly or indirectly.
“ROLE OF EMPLOYMENT OPPORTUNITIES & CHALLENGES IN TOURISM AND HOSPITALITY
SECTORS”
Mr. K. Selvam 4
Direct Employment Opportunities: The Direct Employment Opportunities are the total number
of job opportunities supported by directly in travel and tourism. For example, employment by
hotels, restaurants, travel agencies, tourism information offices, museums, protected areas such
as national parks, palaces, religious sites, monuments, aircrafts, cruise lines, resorts or shopping
outlets, souvenirs, photography, sightseeing tours, farmhouses, bed and breakfast, rural inns, and
guest houses, local transportation (state owned airlines and railways, private transport facilities),
Guides, cooks and scouts.
Indirect Employment Opportunities: Tourism and hospitality also supports indirect
employment in activities like restaurant suppliers, construction companies that build and
maintain tourist facilities, as well as necessary infrastructure, aircraft manufacturers, various
handicrafts producers, marketing agencies, accounting services, which are more or less
dependent on the companies providing direct employment for their revenues. The economic
impact of tourism is measured in terms of its effect on: income, employment, investment and
development; and balanceof payment. In a labour intensive industry such as tourism and
hospitality the greater proportion of income is likely to be derived from wages and salaries paid
to those working in jobs either directly serving the needs of tourists or benefitting indirectly from
tourists’ spending. Income will be high in tourist destinations which attract large numbers of
visitors; where visitors length of stay is maximum, customer spending of money is very high
provided that multiple opportunities and activities are existing for customers to participate
(Figure 1).
Other reasons: The Other reasons that employment opportunities are diversified ever before, are
tourism and international travel become popular all over the world and people themselves
considered that travel is human rights; destinations are worried much to meet the needs and
wants of tourists to offer high standard of services in the destinations; tourists have wide choice
of holidays; international standards and quality assurance system are being set by national and
international tourism and hospitality organizations to provide standardized and quality customer
services thereby this is resulted for ensuring sustainable development in the sectors; the
continuous decline of international oil price is also reduced the cost of travel. All the
aforementioned cases are the main reasons for the growing number of tourist flow in the
Journal of Analysis and Computation (JAC) (An International Peer Reviewed Journal), www.ijaconline.com, ISSN 0973-2861
International Conference on Transformation of Business, Management, Economy in
Digital Era.
Mr. K. Selvam 5
destinations. Therefore, high number of workforces are required to provide services for the
tourists. Due to this facts, tourism and hospitality sectors with supporting industries provide a
diversified employment opportunity.
CHALLENGES OF EMPLOYMENTS IN TOURISM AND HOSPITALITY: Most research
findings identified the major challenges of employment in tourism and hospitality, which are
discussed in the following paragraphs.
Unequal treatment: There is no equal treatment for all type of employees. For example,
according to ILO-UNDP, cited Thomas gender inequality is manifested in the sectors. Women
perform 66 percent of the world’s work, produce 50 percent of the food, but earn 10 per cent of
the income and own 1 per cent of the property. Such circumstances are avail due to the fact that
women have lower access to land, capital and education than men women tend to work at home
or family enterprises unprotected by law, and women face discrimination and overload of work
at business enterprises and family life. As per UNWTO report on the assessment of the
opportunities and challenges which face women with respect to employment in tourism
conducted in 2011 noted that unskilled or semi-skilled women tend to work in the most
vulnerable jobs, where they are more likely to experience poor working conditions, inequality of
opportunity and treatment, violence, exploitation, stress and sexual harassment. In developing
countries, additional factors such as low level of education and training, widespread poverty,
poor maternal health and lack of sex education together with socio- cultural factors have
prevented women from being empowered as economic actors. Businesses can be located at some
distance from residential areas, particularly in poorer countries and communities, imposing both
travel and time costs on women who frequently have limited access to both financial and time-
flexibility resources. The other issue is that lower levels and occupations with few career
development opportunities being dominated by women while key managerial positions are
dominated by men (Vargas, N.d). Women are under-represented in managerial and senior
positions. For example, women represent only 32 per cent of managers in companies within the
EU, 10 percent of members of management boards of the largest companies, and 29 per cent of
scientists and engineers across Europe.
“ROLE OF EMPLOYMENT OPPORTUNITIES & CHALLENGES IN TOURISM AND HOSPITALITY
SECTORS”
Mr. K. Selvam 6
Family and care responsibilities are still not equally shared. The task of looking after dependent
family members is largely borne by women. Far more women than men choose to take parental
leave. This fact, together with the lack of facilities for child care and elder care, means that
women are often forced to exit the labour market: the employment rate for women with
dependent children is only 62.4 per cent compared with 91.4 per cent for men with dependent
children. Vergas had also noted that in contrast to other industries, employment in Hotel Catering
and Tourism tends tobe oriented towards people under 35 years of age. In Spain 43.4 per cent of
workers in the sector are aged 25-34. Swarbrooke had emphasized that Employers frequently
reject women applicants who are over a certain age (usually 35 age limit) and demand photos of
female applicants for jobs. The tourism industry also has a poor record on the employment and
promotion of people with disabilities.
Poor pay and working condition: A European Foundation for the Improvement of Living and
Working Conditions (Eurofound) report states that the average payment rate in the hotels and
restaurants is low when compared to average wages in almost all EU member states. Generally
speaking, the tourism and hospitality sector is recognized by Low hourly rates of pay, over time
work without extra money, long working hours of 50 hours per week, little or no adequate breaks
during peak season periods. The other challenges are inappropriate management style/corporate
philosophy and leadership style such as unplanned recruitment, little due attention for staff
turnover, imported workforce, considering staffs as cost rather than asset, rigid leadership which
is against the concept of democracy, inadequate trainings, and many tasks, such as making
computer bookings and working theme park rides are monotonous. The reason being that tourism
employment is often challenged by one or more of the following factors: seasonality (during
some months of the year the number of tourists is very low so that tourism and hospitality
business sectors cut staffs. A very good example is tourists come to Ethiopia from September up
to February, and the rest months their number significantly reduced) part-time and/or excessive
hours of work; Low-paid (or unpaid) family labour; and informal or sometimes illegal labour
where measurement is notably more difficult. Furthermore, employment opportunities in tourism
and hospitality are affected by different difficult situations that the industry faced. For instance,
terrorist attacks are happening in different tourist destinations for example ISIS, Bokhara,
Alishavave, etc. prevalence of new contagious disease such as the so called Ebolaand Ziqa virus;
Journal of Analysis and Computation (JAC) (An International Peer Reviewed Journal), www.ijaconline.com, ISSN 0973-2861
International Conference on Transformation of Business, Management, Economy in
Digital Era.
Mr. K. Selvam 7
world economy crises and technological advancement in tourism and hospitality sectors such as
the application of e-business, e-marketing and virtual tourism. Due to this reasons, many tourism
and hospitality sectors are being loss their business. This is the main reason that employers are
firing out the workforces, which give rise to unemployment rate.
BEST PRACTICES: The Euro Zone and some western countries can be taken as best practices
in Hotel, catering and Tourism since these sectors are very large and growing rapidly with an
average female participation of 50-70% (more than 60% in UK, Portugal and Austria, as well as
70% in Finland). More importantly, Euro zone as well as Croatia, Serbia, Norway and
Switzerland can be taken as an exemplary for higher women’s share with attractive pay and
working condition in both the food, catering and accommodation industries than in the economy
asa whole. In other countries such as Bahamas, Canada, Australia; the share of women in
accommodation sector is more than 55%. Canada, Dominican Republic, India and Jamaica best
practice for tourism human resources management. However, in Egypt women represent only
25% of the total tourism work force.
Figure Number: 1: Direct, Indirect & Induced Contribution of Tourism & Hospitality Sector
Indirect Travel & Tourism
Contribution Induced Contribution
T & T Investment Spending (Spending of Direct &
Government Collective T & T Indirect Employees)
Spending
Impact of Purchases from 1. Food and Beverages
Suppliers 2. Recreation
3. Clothing
4. Housing
5. Household Goods
Source:Caribbean Hotel and Tourism Association, 2011Report & history
Direct Travel & Tourism
Contribution
Commodities:
Accommodation
Transportation,
Entertainment, Attractions .
Industries: Hotels &
Catering, Retail,
Transportation services,
Business services
Sources of
spending:Residents’
domestic T&T spending,
Business’ domestic travel
spending, Visitor exports,
Individual government T&T
spending.
Total Tourism & Travel
Contribution
To GDP
To Employment
“ROLE OF EMPLOYMENT OPPORTUNITIES & CHALLENGES IN TOURISM AND HOSPITALITY
SECTORS”
Mr. K. Selvam 8
IMPLICATION OF FINDINGS AND THE WAY FORWARDED:To bring excellent
customer satisfaction, according to OECD, 2000, labour should not be treated simply as costs,
but as human capital or assets. A high-quality skilled workforce will ensure greater
competitiveness and innovation, improve job prospects and ease the process of adjustment in
changing markets. Given that, employment and human resource issues should be key topics for
research and analytical studies in the tourism industries. As per the report of UNWTO of 2010,
tourism is an engine to mitigate extreme poverty which can also help poor women to break the
poverty cycle through formal and informal employment, entrepreneurship, training, and
community betterment. Not all women are benefitting equally from tourism development,
however. In some cases, lack of education and resources may prevent the poorest women from
benefitting from tourism development. While in some regions tourism helps empower women, in
other regions, tourism negatively affects the lives of women and perpetuates existing economic
and gender inequalities. Thomas emphasized that the collaboration of all stakeholders including
governments and intergovernmental bodies, local government sector, trade unions, local
communities and their different member groups, NGOs, community based tourism initiatives
through social dialogue and discussions can encourage equality of opportunity and treatment;
reduction of wage and salary gaps between men and women for jobs of equal value; increased
women’s participation in decision making for higher female representation in managerial
positions, and accommodating the cultural customs, traditions and practices of employees.
Through regular meetings and discussions among various stakeholders with ILO, we have to
strive for enhancing good pay and working conditions which is free from sexual harassment,
discrimination and exploitation as well as creation of jobs that are stable, permanent and full-
time that provide fair salaries and benefits as well as ensuring and enforcing relevant labour
regulations which reflect basic human rights, the prohibition of forced labour and exploitation of
child labour, eliminating any discrimination based on race, colour, sex, religion, political
opinion, national extraction or social origin. Most importantly, in order to have effective work
forces in tourism and hospitality industries much should be devoted to build democratic,
participative management cultures; emphasis for human resource management to bring quality,
recognizing employees as assets, rewarding staffs with best performance, strengthen linkage with
educational institutions to provide courses which are more closely geared to the needs of the
Journal of Analysis and Computation (JAC) (An International Peer Reviewed Journal), www.ijaconline.com, ISSN 0973-2861
International Conference on Transformation of Business, Management, Economy in
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Mr. K. Selvam 9
tourism industry, in terms of both course content and the mode of delivery, such as the use of
open and distance learning. This is the only way by which the majority of the staff in the industry
can gain access to educational opportunities. United Nations Environment Programme and ILO
gives due attentions for standardization and certification which have a central role to play in
promoting environmental and social performance and satisfying consumer demand for
responsible travel. Certification schemes may be applied to tourism enterprises such as hotels,
resorts, marinas, travel agencies, tour operators, and transportation services. They may also be
used to certify the environmental soundness of tourist destinations and natural resources at these
destinations. Various standards of the International Organization for Standardization (ISO) have
been used in the tourism sector to improve the overall quality of service. These include ISO 9000
for quality management and ISO 14000 for environmental management. To overcome the effect
of seasonality, according to Griffin and DeLacey, it needs clear policies to such as: targeting
markets most likely to travel in the offseason; discounted seasonal offers; organizing events at
less busy times of the year; encouraging attractions to stay open longer; and where year-round
full-time employment cannot be achieved, alternative solutions may prove possible. For instance,
working hours could be adapted to suit seasonal patterns while maintaining benefits or seasonal
workers could be ensured jobs with the same employers each season. National and local
Governments should strive to provide the best possible wages and benefits that can be extended
to include contributions to health care, disability, maternity, education and retirement, where
these are not legally mandated. Amenities such as housing, food and medical care should be
provided where needed and should be of a good standard. Service charge distribution should be a
well-documented and transparent process.
CONCLUSION: Today, Tourism and Hospitality sectors are the foremost sectors of the world
economy. It improves balance of payments as well as income creation and employment
opportunities. Recent data showed that tourism and travel creating over 276 million jobs and
generating 9.8% global GDP in Presently. Besides, tourism can be also nurturing sociocultural
amplification of the people, empowering women and disabled communities by creating favorable
job options. Due to this, both developed and developing countries give due attention for creating
quality staff for quality tourism and hospitality industries to step on the sectors contribution for
“ROLE OF EMPLOYMENT OPPORTUNITIES & CHALLENGES IN TOURISM AND HOSPITALITY
SECTORS”
Mr. K. Selvam 10
the country’s development. Based on the review, tourism and hospitality industries have creating
many job opportunities for millions of people in the world in different areas like accommodation,
food and beverage (restaurants, dining rooms, cafes, fast food outlets, pubs, nightclubs, bed and
breakfasts, motels, hotels, resorts, lounges, catering operations; airlines, airports, aircrafts, ships,
boats, cruises, land transportations like trail, bus, travel agencies, tour operation companies),
natural and cultural attractions such as national parks, caves, monuments, museums and galleries,
theatres, concerts, festivals, carnivals, conferences, trade shows, and exhibitions). Political
stabilities, reduced working hours, technological advancement, increased income and conducive
climate are the major favorable conditions for the development of the stated tourism and
hospitality establishments to create millions of jobs. Unfair treatment among men and women
employees; untrained workforce, poor working condition, seasonality of the sectors, sexual
harassment and stress; high working hours without overtime payment, the sector is low paid
salary payer and other socio-cultural related factors are some to be noted as challenges for
employment condition in tourism and hospitality business.
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Journal of Analysis and Computation (JAC) (An International Peer Reviewed Journal), www.ijaconline.com, ISSN 0973-2861
International Conference on Transformation of Business, Management, Economy in
Digital Era.
Mr. K. Selvam 11
Ministry of Culture and Tourism (2009) Federal Democratic Republic of Ethiopia Tourism Development
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2009:
Abbreviation:
ETB: Ethiopian Birr; EU: European Union; GDP: Gross Domestic Product; HCT: Hotel Catering
and Tourism; ILO: International Labor Organization (of the UN); ISO: International
Organization for Standardization; IUCN: International Union for Conservation of Nature (The
world conservation Union); MoCT: Ministry of Culture and Tourism; NGOs: Non-Governmental
Organizations; OECD: Organization for Economic Cooperation and Development; UK: United
Kingdom; UNDP: United Nations Developmental Program; WNWTO: United Nations World
Tourism Organization; WTTC: World Travel and Tourism Council
“ROLE OF EMPLOYMENT OPPORTUNITIES & CHALLENGES IN TOURISM AND HOSPITALITY
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Mr. K. Selvam 12
REGISTRATION FORM
Name : Mr. K. SELVAM
Educational Qualification: ADTTM., MTM., M.Phil., PGDCA., PGDHM., Ph.D (Pursuing).
Designation : Ph.D.RESEARCH SCHOLAR & ASSISTANT PROFESSOR
Department : Hotel Management,
Journal of Analysis and Computation (JAC) (An International Peer Reviewed Journal), www.ijaconline.com, ISSN 0973-2861
International Conference on Transformation of Business, Management, Economy in
Digital Era.
Mr. K. Selvam 13
Institution : Leela Institute of Hotel Management,
No. 120/68, DD Main Road, Arapalayam, Madurai – 625016.
RESEARCH SCHOLAR : MADURAI KAMARAJ UNIVERSITY, MADURAI – 625021.
Ph.D. Guide: Dr B. GEORGE, M.sc., PGDCSA., MTA., M.Phil., Ph.D.
Principal i/c, Madurai Kamaraj University College,
Algarkovil Road, Tallakulam, Madurai – 625002.
Residence Address : 33/11A First Floor,
Thaikkal 3rd Street, Thirumalai Rayar Padithurai,
Simmakkal, Madurai – 625001.
Email ID : [email protected]
Mobile Number : 9791574210
Mode of Presentation : In - absentia
Paper Presentation Topic : “ROLE Of EMPLOYMENT OPPORTUNITIES &CHALLENGES
IN TOURISM AND HOSPITALITY SECTORS”